Harman International to be acquired for $8 billion

Harman International, known for its high-end audio gear like Harman/Kardon and JBL, plans to go private in sale valued at about $8 billion.

The District-based company, co-founded by Sidney Harman in 1953, is being acquired by investment firms Kohlberg Kravis Roberts and Goldman Sachs.

Shareholders would get $120 per share, 17 percent more than the closing price Wednesday. Harmon stock jumped more than 19 percent in Thursday trading, indicating investors think the company may get a higher offer.

Under terms of the agreement, Harmon is allowed to consider other bids until June 15 and says it will actively solicit more offers.

In the proposed acquisition, Harman, who holds a 5 percent stake in the company, would exchange half of his holdings for interest in the new company and would remain executive chairman.

If no other investors step forward, Harman expects the acquisition to be completed in the third quarter. The deal is still subject to shareholder and regulatory approvals.

Harman International invented the first all-in-one home stereo receivers in the 1960s. The company, which has more than 10,000 employees now, is one of the largest suppliers of onboard video entertainment systems for the automotive industry.

Harman shares (NYSE: HAR) rose $19.94, or 19.44 percent, to close Thursday at $122.50 per share.